Preview

CH2 Payroll Acounting

Powerful Essays
Open Document
Open Document
2442 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
CH2 Payroll Acounting
CHAPTER 2
Learning Objectives
After studying this chapter, students should be able to:

1. Explain the major provisions of the Fair Labor Standards Act.
2. Define hours worked.
3. Describe the main types of records used to collect payroll data.
4. Calculate regular and overtime pay.
5. Identify distinctive compensation plans.
Contents
Chapter 2 outline:
LEARNING OBJECTIVES
THE FAIR LABOR STANDARDS ACT
Coverage
Enterprise Coverage
Individual Employee Coverage
Employer
Employee
Employees of a Corporation
Domestics
Partnerships
Statutory Employees
Statutory Nonemployees
Wages
The Minimum Wage
Paying Less than the Minimum Wage
State Laws
Paying a “Living Wage”
Tips
Workweek
Overtime Hours and Overtime Pay
Exceptions to Overtime Hours and Overtime Pay Provisions
Compensatory Time Off
Exemptions from FLSA Requirements
White-Collar Workers
Test of Exemption
Salary Basis
Blue-Collar Workers
Equal Pay Act
Child-Labor Restrictions
Nonfarm Occupations
Agricultural Occupations
Certificate of Age
Penalties
Areas Not Covered by the FLSA
DETERMINING EMPLOYEE’S WORK TIME
Principal Activities
Clothes-Changing Time and Wash-Up
Travel Time
Idle Time
Waiting Time
Rest Periods and Coffee Breaks
Meal Periods
Taking Work Home
Sleep Time
Training Sessions
Doctor’s Appointments
Preliminary and Postliminary Activities
Fractional Parts of an Hour
Absences
Tardiness
RECORDS USED FOR TIMEKEEPING
Time Sheets
Time Cards
Computerized Time and Attendance Recording Systems
Next Generation
Touch-Screen Technology
Internet
Biometrics
METHODS OF COMPUTING WAGES AND SALARIES
Time Rate
Calculating Overtime Pay
Converting Weekly Wage Rates to Hourly Rates
Converting Biweekly Wage Rates to Hourly Rates
Converting Monthly Salary Rates to Hourly Rates
Converting Semimonthly Salary Rates to Hourly Rates
Salaried Nonexempt Employees
Salaried with Fluctuating Workweek
BELO Plan
Piece Rate
Overtime Earnings for Pieceworkers—Method

You May Also Find These Documents Helpful

  • Good Essays

    As part of the audit of Manor Company, you are assigned to review and test the payroll transactions of the Galena plant. Your tests show that all numerical items were accurate. The proper hourly rates were used, and the wages and deductions were calculated correctly. The payroll register was properly footed, totaled, and posted.…

    • 792 Words
    • 4 Pages
    Good Essays
  • Good Essays

    records what an organization owns, what it owes, and what it is worth at a particular…

    • 715 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    One law and regulation that guides Total compensation is the Fail Labor Standards Act (FLSA) This is the oldest of labor laws and also called the wage and hour law. It provides concern for minimum wage, overtime pay, record keeping, and equal pay.…

    • 438 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Form 1023

    • 4734 Words
    • 19 Pages

    e Do you or will you approve compensation arrangements based on information about compensation paid by similarly situated taxable or tax-exempt organizations for similar services, current compensation surveys compiled by independent firms, or actual written offers from similarly situated organizations? Refer to the instructions for Part V, lines 1a, 1b, and 1c, for information on what to include as compensation. f Do you or will you record in writing both the information on which you relied to base your decision and its source? g If you answered “No” to any item on lines 4a through 4f, describe how you set compensation that is reasonable for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed in Part V, lines 1a, 1b, and 1c. 5a Have you adopted a conflict of interest policy consistent with the sample conflict of interest policy in Appendix A to the instructions? If “Yes,” provide a copy of the policy and explain how the policy has been adopted, such as by resolution of your governing board. If “No,” answer lines 5b and 5c. b What procedures will you follow to assure that persons who have a conflict of interest will not have influence over you for setting their own compensation? c What procedures will you follow to assure that persons who have a conflict of interest will not have…

    • 4734 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    to the extent practicable, the amount of the adjustment for the current and previous periods to each financial statement line item affected and, if applicable, the basic and diluted earnings per share…

    • 1701 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and recordkeeping and child labor standards for both full time and part time workers in the United States. The FLSA establishes minimum wage and state and local government rules of employment. Exempt employees are employees who do not have to be paid overtime.…

    • 458 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    In the United States, organizations are financially accessible because of many years of financing cuts, reductions in Medicare payments imposed by Balanced Act of 1997, decreases in Medicaid reimbursements, and the lowering stresses of controlled care (University of Phoenix, 2013). Organizations and other health care facilities should organize cautiously when the situation comes to financing choices, service agreements, type of equipment, physician favorites, and locating to assist in making the best decisions. According to several published and quoted surveys, organizations are postponing or eliminating equipment investments in short-term (Barlow, 2009).…

    • 1194 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The federal laws of broad scope governing employment and illegal discrimination are the Age Discrimination in Employment Act of 1967, and Title VII of the Civil Rights Act of 1964, and the Immigration Reform and Control Act of 1986. The state employment law this client will have to abide by is the Texas Minimum Wage Law. Noncompliance with the provisions stipulated by these laws might result in administrative penalties, lawsuits, complaints, criminal sanctions, or adverse financial consequences due to back pay or compensation entitlements that might be ruled in court.…

    • 621 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    “Keeping track of employee working hours is not an optional chore: The federal Fair Labor Standards Act (FLSA), and numerous other federal and state laws, require employers to keep records of hours worked, wages paid, and other conditions of employment” (Business and Legal Resources 2017). Our goal is to have an effective time tracking management system like Ideal Image, who is known for their excellent bio/thumbprint system. Their system ensures all employees are accurately tracking their time and compensated…

    • 552 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Exempt vs Non-Exempt

    • 621 Words
    • 3 Pages

    Compensatory time off in the private sector as long as it is equivalent to one and one-half times the individual’s hourly salary is an alternative to overtime pay. Exempt employees in the private sector are not offered this benefit.…

    • 621 Words
    • 3 Pages
    Good Essays
  • Good Essays

    While plans differ among jurisdictions, provision can be made for weekly payments in place of wages (functioning in this case as a form ofdisability insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), and benefits payable…

    • 1726 Words
    • 7 Pages
    Good Essays
  • Good Essays

    References: Resource FLSA Law . (2006, 09 28). Retrieved 2 05, 2014, from Recent Changes to Fair Labor Standards Act: http://www.resource4flsalaw.com…

    • 621 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    | * Employers with 15 or more employees working 20 or more weeks a year * Labor Unions * Employment agencies * State and local governments…

    • 2300 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Cash Management Matrix

    • 399 Words
    • 2 Pages

    | Segregation of duties is a basic, key internal control and one of the most difficult to achieve. It is used to ensure that errors or irregularities are prevented or detected on a timely basis by employees in the normal course of business.…

    • 399 Words
    • 2 Pages
    Good Essays
  • Better Essays

    The public school district must correctly determine if an individual is an employee or considered an independent contractor because the law requires that an employer withhold and pay: federal and state taxes; social security and Medicare taxes; and unemployment tax from the employees’ pay check. Employees’ will receive benefits that the company offers. Independent contractors’ are responsible for paying the necessary government entities and do not qualify for company benefits.…

    • 1156 Words
    • 5 Pages
    Better Essays